Federal Reserve's Goolsbee: Current interest rates should be maintained, tariffs may temporarily increase inflation
Federal Reserve official Goolsbee stated that it is currently the time to pause interest rate adjustments and adopt a wait-and-see stance, with a high threshold for policy changes. He pointed out that the job market remains robust and he tends more towards market inflation expectation data. Goolsbee believes that the current high tariff level will push up inflation in the short term and damage economic growth, although some measures have been suspended. In addition, he said U.S. bonds are still the safest assets globally, and recent strong ten-year bond auctions have eased market concerns.
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